Get to know Alexander Bohusch - Luther (Attorney-at-Law)

WILLIAMS MEDIA spoke to Alexander Bohusch about his experience working in Myanmar's Law Firms.

Alexander Bohusch - Luther (Attorney-at-Law)

How did you get into the legal industry?
I studied law at the Albert-Ludwigs University in Freiburg, Germany, but have to admit that my initial interests in the field of law shifted considerably during my first internships with international law firms in Asia.

What are some of your career highlights from your time in the legal industry?
After spending longer periods of time in, inter alia, Singapore, the Philippines and Malaysia, I joined Luther in Singapore in 2010. Since 2013, I further act as Location Head for Luther in Yangon, Myanmar. I am licensed to practice law in Germany, registered as a Foreign Lawyer in Singapore, and accredited as Tax Practitioner (Income Tax) with the Singapore Institute of Accredited Tax Professionals. My personal focus is on international structuring and tax planning, but due to the specific sector-focus in Myanmar, I also do a lot of employment and land related law.

Where do you see Yangon / Myanmar in 20 years?
The development of Myanmar will depend greatly on the political developments during the coming years. Immediately following its political opening, Myanmar was seen as Asia's rising star by the international community. It can however not be denied, that enthusiasm has waned due to the slow progress in the development and implementation of a modern legal framework. We sincerely hope, that the new government will put their promises into action to further the countries development towards a free and open market.

Where are the key markets that people should be looking to in Myanmar that you think will have upside?
The opportunities are endless, but in the short term of course limited by Myanmar's current development stage. Immediate opportunities can be found in the property, infrastructure, energy, logistics and hospitality sectors, as well as consumer goods and the medical sector.

Why did you fist come to Myanmar to set up your business?
Luther recognized the potential of Myanmar early and decided its market entry in 2012. We initially established our office to assist existing European clients, but soon expanded to meet the requirements of the international community in the country.

What advice would you have for those looking to come into markets like Myanmar and set up business?
Particular attention should be paid to the intended business objectives and licensing requirements, since many activities are still restricted for foreign investors. Ill-advised description of the intended business activities may result in the delay or even rejection of an incorporation, where a simple re-wording may have resulted in immediate approval. Similarly, attention should be paid to the corporate governance and compliance, which are unfortunately still neglected by many investors resulting in high fines and even suspension of businesses.

How do you best help a client?
With a team of eight French, German and Myanmar lawyers, complemented by 35 professionals, accountants and tax advisors with knowledge and experience in all aspects of corporate and regulatory compliance, Luther Law Firm Ltd. and Luther Corporate Services Ltd. assist and advise clients in all stages of the business lifecycle, namely, from the incorporation of a Myanmar business vehicle, through on-going support services such as legal and tax advice, bookkeeping, accounting, payroll and cash, fund & payment administration, up to the winding up of a company.

What would you like to see changed in the industry in 5 years?
While often mentioned, we consider the lack of transparency and rule of law as one of the main obstacles hindering western foreign investment in Myanmar. We sincerely hope, that new laws are not only enacted by parliament, but also fully implemented by the relevant authorities, creating legal certainly and thus increasing investor confidence.

What are the opportunities in the market place at the moment?
The recent enactment of the Myanmar Investment Law 2016 is expected to further lift the ban on trade. On 10 April 2017, the Myanmar Investment Commission issued a list of restricted investment activities (Notification No. 15/2017), according to which retail and wholesale trading services shall be generally allowed. The Ministry of Commerce is currently finalizing new Wholesale/Retail Regulations, which will allow foreign investment into wholesale and retain trading, a change that should reinvigorate international investments into Myanmar. Similarly, the issuance of Condominium Rules will hopefully stimulate and boost the property market.

What advise do you have for people looking to buy real estate in Myanmar?
Land use rights in Myanmar are governed by a multitude of laws and regulations that were adopted by the British Empire and the subsequent rulers. On the one hand, Myanmar laws distinguish between Myanmar citizens (and Myanmar-owned companies) and foreign citizens (and foreign-owned companies), which naturally affect the ownership, leasing and use of land and immovable property. Under the current legal confines of the Transfer of Immovable Property Restriction Law 1987, foreigners or foreign owned companies are not (yet) permitted to own immovable property.
On the other, the current legal framework does not (yet) allow separate ownership in buildings or parts thereof, resulting in uncertainties particularly in respect of the sale of apartments. These legal ambiguities and restrictions, combined with a general lack of proper registration of land transactions, result in many potential pitfalls to be carefully considered by investors.